November 20, 2025

Innovation story

Energy reuse fuels food innovation

Could recycled heat hold the key to sustainable farming? In a unique facility in Iceland, VAXA Technologies is pioneering a low-carbon approach to food production.

Symmetrical rows of transparent tubes illuminated with magenta LED lighting inside an enclosed facility.

Despite its cool climate, Iceland provides fertile ground for innovation. One example can be found in an industrial park just outside Reykjavik, where tech startup VAXA Technologies is developing an innovative, low-carbon food production system.

The crop is microalgae, sometimes referred to as “the mother of all plant life”. Packed with protein, vitamins, minerals, and Omega-3, algae can be used as meat replacements, dietary supplements, and food additives.

”With our patented energy-to-food (E2F) system, we have found a low-carbon way to turn energy into food. We believe this can revolutionize large-scale farming and contribute to a more sustainable future,” says Kristinn Hafliðason, General Manager of VAXA Iceland. 

Vertical water farming

To this point, VAXA farms two species of microalgae in a closed hydroponic (water-based) system. The algae are cultivated indoors in vertically stacked containers filled with nutrient-rich water. Artificial lights ensure optimal growth conditions.

According to Hafliðason, hydroponic farming offers many advantages compared to traditional, soil-based farming.

“First of all, you only need a fraction of the land to grow the same amount. The closed and controlled environment is clean, which improves quality, and provides stable conditions year-round. The crop also grows faster and becomes extremely nutrient-rich. On top of this, our E2F system consumes much less water, and pesticides or fertilizers are not needed,” he explains.

Powered by circularity

When treading new waters, you will also face some challenges. According to Hafliðason, algae farming in closed systems brings three key issues that VAXA has tackled through some clever engineering. The hidden secret is a circular flow where excess energy from the neighboring geothermal plant is reused and then returned to the surrounding industrial park.

“First of all, you need to remove the generated heat in a cost-efficient way. We reuse cold residue water from the neighboring geothermal plant to cool our process. As the water flows through our system, it heats up to about 20 degrees and is then returned to the industrial park. This circular approach minimizes both costs and environmental impact.”

Aerial view of a geothermal facility with steam rising against a backdrop of green volcanic hills. Located next to a geothermal plant, VAXA Technologies are able to reuse excess energy in their farming process and then return it to the industrial park. This circular approach makes the operations carbon negative.

Recycling CO2

The second challenge concerns the need for a steady and cost-efficient flow of CO2, as plants are photosynthesizing organisms. In VAXA’s system, this is solved by capturing and recycling carbon dioxide in a highly efficient way.

“When pumping back air into a system, you normally lose about 95% of the CO2. Again, we benefit from our water-cooling solution which reduces the loss to a mere 15%. This means that we can recycle most of the CO2 in our own process, which reduces emissions and makes it more self-sufficient,” Hafliðason explains.

Keeping it clean

The third challenge is preventing microorganisms from growing onto the container surfaces, just like in the aquarium you have at home. This “biofilm” reduces the energy flow and consequently also the yield. VAXA partly solves this with a curvy container design, but the real win lies in boosting the airflow. Again, the circular setup holds the key to success.

“Normally, the costs of adding more air will overshadow the benefits, but since we recycle our CO2, we can pump in about four times as much air. We see that it keeps our containers clean, which ensures stable quality and productivity levels,” says Hafliðason.

“The holy grail is to solve all three challenges without adding costs, and we are proud to have done that. All these solutions combined also makes our operations carbon negative,” he adds.

A steady flow of compressed air

The innovative farming process relies on a steady flow of precisely pressurized air, supplied by a set of Atlas Copco compressors. In the beginning, a set of smaller compressors did the job, but as the facility expanded and production was scaled up, more powerful machines were needed.

“We introduced a set of compressors designed for low-pressure air that provide the exact airflow and pressure. They are equipped with variable speed drive motors, which boost energy efficiency, and carbon filters that keep the air free from any contaminants. As VAXA continues to grow, we are committed to keep supporting them on their innovation journey, in collaboration with our local distributor Sindri,” says Johan Löthberg, Key Account Manager in Atlas Copco Air & Gas Applications.

“If you want to revolutionize the food industry you need the best equipment possible, so Atlas Copco was the natural choice for us,” says Hafliðason. “We started out small with a big idea and developed our E2F model through continuous growth and refinements. Today, we are on the cusp of doing something amazing.”

Watch video about VAXA Technologies

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